PayPal (NASDAQ:PYPL) stock is trending on social media today after the Security and Exchange Commission (SEC) reportedly subpoenaed it because of its work with stablecoins.  

According to Reuters, “Stablecoins are crypto tokens whose monetary value is pegged to a stable asset to protect potential investors from wild swings in prices.” Back in August, PayPal launched
PayPal USD (PYUSD) a stablecoin that tracks the U.S. dollar.

PayPal reported that the SEC’s subpoena sought documents related to PayPal USD and that the company was cooperating with the subpoena.

PYPL was the first large American financial company to unveil a stablecoin.

PayPal’s Q3 Results

On a positive note, PayPal reported better-than-expected third-quarter results yesterday, as its revenue climbed 8% versus the same period a year earlier to $7.4 billion, which was slightly above analysts’ average estimate. Further, its earnings per share soared 20% year-over-year (YOY) to $1.30, surpassing the mean outlook by 7 cents.

The company’s new CEO, Alex Chriss, pleased the Street by saying that the company’s expenses are “way too high” and indicating that he would seek to meaningfully reduce them in the future.

Chriss may also have encouraged investors with his upbeat assessment of PayPal’s status, as he said:

“We have significant opportunities for growth and impact, the foundation is strong, and the value pools and growth vectors are there. ”

The Price Action of PYPL Stock

Heading into today, PYPL stock had fallen 9% in the last month and 29% so far this year, but the shares are advancing a little over 3% today.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.